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Facts
The assessee's appeal for assessment year 2017-18 arose against the order of the CIT(A) concerning proceedings under section 147 of the Income-tax Act, 1961. The Assessing Officer initiated reassessment proceedings based on reasons to believe that the assessee's income related to accommodation entries had escaped assessment.
Held
The Tribunal held that a reopening based solely on the premise of accommodation entries without making any addition on that account is not sustainable in law. Citing the case of CIT Vs. Jet Airways (I) Ltd., the Tribunal quashed the reopening.
Key Issues
Whether the reopening of assessment under Section 147 was valid when no addition was made by the Assessing Officer on the grounds for reopening.
Sections Cited
147, 144B, 69C, 148
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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 24.11.2025 Date of pronouncement 24.11.2025 ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)-30 [in short, the “CIT(A)”], New Delhi’s DIN and order no. ITBA/APL/M/250/2025- 26/1079714267(1), dated 19.08.2025 involving proceedings under section 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties at length. Case file perused.
Coming to the assessee’s first and foremost legal ground challenging validity of the impugned reopening itself, the tribunal hereby notices from a perusal of the case records that the learned Assessing Officer had set into motion section 148/147 mechanism after recording a reasons to believe that its income representing accommodation entries involving a sum of Rs.11,79,20,000/- had escaped assessment whereas his assessment framed on 30th March, 2022 ended up disallowing interest expenditure under section 69C amounting to Rs.79.20 lakhs which has been upheld in the lower appellate discussion.
That being the clinching factual position, I hereby quote CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom.) that such a reopening wherein the learned Assessing Officer does not make any addition qua this sole reason therein; is not sustainable in law. The same stands quashed in very terms. All other pleadings between the parties on merits stands rendered academic. This assessee’s appeal is allowed. Order pronounced in the open court on 24th November, 2025 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 24th November, 2025. RK/- Copy forwarded to: 1. Appellant 2 | P a g e